Netflix shares jump 14% on strong subscriber growth

Netflix shares catapulted in premarket trade early Thursday beating Wall Street estimates in its third-quarter results.

The stock was up 13.8% at 5:24 a.m. Eastern Time.

The platform reported a net subscriber growth of 8.8 million.

It is the biggest quarterly growth since the second quarter of 2020.

The company also said it expected an operating margin of 20% for the FY23 at the top end of the company’s prior guidance.

The revenue came in at $8.542 billion representing YoY growth of 7.8%.

The streaming platform’s net income rose to $1.677 billion from $1.398 billion the prior year.

Shares of Netflix have gained nearly 30% in the past one year.

During the quarter, the company cracked down on password sharing, limiting the use of an account to one household.

Netflix has also added a new subscription option that allows users to pay less if they view commercials.